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Many vehicle lovers are enthralled by the prospect of owning an antique car. However, owning one does mean taking a different approach to its maintenance.
Some repair shops can only conduct diagnostics on today’s modern automobiles. So collector car owners spend hours fixing up and rebuilding their collector cars.
A restored collector’s automobile may be worth a large amount of money. Antique vehicles and other collectible vehicles are valued due to their scarcity.
It’s critical to put insurance on these automobiles to safeguard the time, effort, and money invested in them. We’ll explore whether people who drive their cool old cars for leisure need collector car insurance and how to get the best rates.
What is a collector car: antique, classic, or vintage?
Although the phrases antique, classic, and vintage may appear to be the same, they are not. Antique automobiles, for example, are vehicles that are more than 45 years old. They are maintained under the manufacturer’s original standards.
However, what qualifies as an antique is determined by state legislation. Automobiles in this category need a unique license plate. As a result, you should always double-check your state’s regulations.
Some antiques are vintage, and some vintage automobiles are antiques. Yet, this isn’t always the case. Cars are usually classified as vintage if they were manufactured between 1919 and 1930.
Classic automobiles must be at least 20 years old and no more than 40 years old. Cars, like antiques, should be authentic to the original design. Although antique cars altered with aftermarket enhancements are still considered authentic classics.
Defining a Collector Car
Anyone can collect any sort of automobile. Yet, antiques, rarer models, and customized muscle cars are the most common collector cars. Due to these vehicles’ high maintenance and the cost to replace vintage parts, collectors can lose savings by fixing up these cars.
As mentioned above, a vehicle can be designated as an antique once it reaches the age of 20 years. But most of the most well-known antique automobiles are considerably older, dating from the 1950s, 1960s, and 1970s.
Collectors’ automobiles are rare vehicles, so they may require special insurance. For instance, an automobile may be a prototype that was only produced in a small quantity. If just a few hundred cars were ever produced, the car would be valuable.
What is collector car insurance?
Many of the same coverages are available in a collector car insurance policy as they are in a traditional auto insurance policy.
A vintage automobile policy can include:
- Liability coverage
- Uninsured and underinsured motorist coverage
- Medical coverages (including personal injury protection and medical payments coverage)
You can also get payment for towing and roadside assistance. The coverage provided for your vehicle under collision and comprehensive coverages is the key distinction in a collector car insurance policy.
These insurance policies will be based on the agreed-upon value of your car. So someone with a damaged collector car can continue to live debt-free. Mostly because insurance will either reimburse for the entire value of the car or for repair costs.
This represents an agreement between you, the policyholder, and the insurer on the worth of the vehicle for which the policy is written. This amount is calculated based on industry standards and is evaluated every time the policy is renewed.
Benefits of Collector Car Insurance
One of the most significant advantages of vintage vehicle insurance is that these organizations specialize in working with rare, collector, or antique automobiles.
The agents, adjusters, and other personnel you encounter will be more familiar with the ins and outs of a unique automobile with collector car insurance. They will also be familiar with the demands of a classic car owner.
Other advantages of collector car insurance include:
- Car show coverage: This is coverage while it is on display, like at a car show, with no attendance necessary.
- Cash settlement option: If your automobile is totaled or stolen, you have the option of accepting a cash payment instead of having to repair or replace it.
- Increased replacement cost: If the value of your automobile rises over the agreed-upon amount, this coverage will cover the difference.
- Medical reimbursement for auto shows: This pays for medical costs if someone is injured while visiting an exhibit or event where your automobile is featured.
- Roadside help: A flatbed tow truck tows the car to avoid wear and tear while transferring to a repair shop or back home.
- Spare parts coverage: This covers damage or theft of spare components such as tires, valves, or other gear.
Do I need to insure my collector car?
You may not need to insure the vehicle if it is used as a display item and is never driven. Yet, you must have at least basic liability insurance if the car is ever operated on public roads.
Since collector cars are expensive, you should also buy comprehensive coverage on the car to safeguard it from vandalism, theft, and bad weather. Collision coverage is also a smart option if you drive your car regularly.
On the bright side, you may not need as much coverage while the vehicle is being restored as you will once it is finished and drivable.
Buy a comprehensive-only policy if you want to protect the car from natural disasters and other accidents while it’s being restored. This will keep expenses down while still offering some protection against damage.
Imani Francies writes and researches for the car insurance comparison site, CarInsuranceComparison.com. Imani stays up to date on the newest collector car trends to help people save money when purchasing an auto insurance policy.